Matt Badiali: Market Irrationality

Individuals who have almost no understanding of economics will have probably heard of the basic principles regarding supply and demand. If demand is higher than supply, one would expect higher prices. According to Matt Badiali, he feels that copper is a commodity that is totally messed up in regard to its price. Supply of copper is less than the demand, but the price action for the metal does not reflect this. Usually, in the long-term, fundamentals such as supply and demand will play out but there are current market forces that are keeping the price of copper down.

Matt Badiali is a financial advisor and a geologist. He keeps up with all the latest developments in the resource space. One factor that he believes has been negative for copper is the consistent trade war rhetoric that takes place between the Trump Administration and the Chinese government. The trade war situation is creating fear in the markets. Many traders feel that the trade war could potentially push the world into a recession. Copper is demanded much less during economic slowdowns. Matt Badiali believes that the fear displayed by the traders is irrational. He found a source in Bloomberg that a Grasberg copper mine will not be constructed on time. Over his many year’s training as a geologist. Mr. Badiali is familiar with how copper mines take much longer to get online than most anticipate. With a supply deficit and no new mines coming on in the near term, this should create more shortages in copper. Matt Badiali’s Freedom Checks Exposed!

Although copper has not performed too well lately, the fundamentals remain very strong long-term and Matt Badiali feels that copper could easily enter a new bull market. Around the world, there is much discussion about electric projects. Both solar and wind projects are going to require more copper. Mr. Badiali feels that it will be the electric car that is going to really drive demand for the metal in the years to come. Over the last few years, Chinese consumption of copper has been dramatic. Matt Badiali feels that copper miners are going to give investors a great return in the coming bull market in copper.